Grid trading

As i'm reading @Where is the EDGE in trading? The most important thing in trading! @


Since in trading we need to have an edge,
i;m planning to go for Grid trading !!

since the market :
Range --80%
Up trend --10%
Down trend --10%


Using Grid trading, (no need to guess, just place orders mechanically)
No martingale, all fixed lot size
With predefined TP, SL, direction and grid size (eg sell USD direction, buy Gold or silver, etc)
Spread across a few pairs to diversify .
That it self should be an edge.


Just examples:

using 0.1% account size, TP 100pips ==> 0.1% win
Predefined SL to 5% lose , the Grid should have 1000pips

Win - 0.1% (90% =10+90)
Lose - 5% (10%)

Assuming, we have 20:1 win/lose rate
win --> 90 x 0.1 x 20 = 180
lose -->10 x 5.0 x 1 = 50


With above assumption and examples, i think i have got an Edge to be profitable traders,

what do u thinks guy ? Feel free to include any assumption that i missed out ... Thank you


*Personally i plan to use big $$$ to implement this strategy,
estimate weekly return would be 1--2%, 1 year return around 40--60%
Even got hit a few SL, the net return should be around 20--40% estimated.

One of the most important considerations in grid trading is the choice of pair or pairs to trade. Choose the most ranging pair(s) your broker offers.

Grid trading, averaging down and martingale all use about the same concept. They are probably at their best without using a stop loss. Ofcourse you have to deal with the fact that one or a few bad turns may ruin the account. However, personally, I think this is one of the rare strategies that can beat this market.

Good luck

King.

There are many grid strategies. Please explain how you would apply your grid strategy. Thx.

TP=100 (0.1%); SL=5000 (5%); Grid=1000; sounds good but you still need to identify the trend or you could get burned

you're not being realistic about the 2% weekly return though (that is 2000 pips/week = 400 pips/day) you'll have to trade multiple pairs, meaning bigger risk

This is real grid system: www .youtube.com/watch?feature=player_embedded&v=jAg Z-NTM1a8